All posts tagged Islamic bond

Dana Gas has failed to repay a $920 million Islamic bond that came due Wednesday, arguably the first U.A.E. company to do so. But not many are jumping to call it a default. Yet.

Sure, the company technically still has a three-day grace period to meet its obligations after the bonds matured. But if they haven’t paid yet, the chances are slim that they will do so in the next 72 hours.

Which leaves the sukuk holders—including two large asset management firms, Blackrock Inc. of the U.S. and the U.K.’s Ashmore Investment Management, part of Ashmore Group PLC with no options but to seek legal recourse to retrieve the money that the company owes them. And that is what they are planning to do, according to a person involved in the matter.

But Dana‘s response seems more feisty than you’d expect for a company that’s potentially facing claims on its assets.